2009 Annual Report.pdf - Town of Milton

FY09 that will approach $600,000. This deficit will have an effect on the
amount of funds available in the FY10 budget.
The Town received permission from the State to bond the ongoing medical
expenses of a Firefighter who was injured in the line of duty. Under the legislation
enacted up to $800,000 of the continuing medical expenses of this Firefighter
may be bonded each year for the next five years. Medical expenses are
currently estimated to be $400,000 annually. This legislation will add much
needed relief to the Towns operating budget. Without this legislation, the medical
costs would have to be funded as part of the operating budget.
The Town issued $12.5 million of multi-purpose bonds in 2009. We are
happy to report that the Town maintained its AA bond rating even in these hard
economic times. The bonds permanently financed the new library as well as
temporary debt incurred for medical expenses and the surface drain project.
The interest rate for the bonds was 3.96%
D. The Budget Process
The FY09 budget requests that were submitted by most of the Town’s departments
were influenced by several factors, which are discussed below:
We received initial spread sheet budget projections from the Town Administrator
in September 2008. At the request of the Town Administrator departmental
budgets normally required to be submitted to the Warrant Committee by
December 1 were submitted in early October. This was requested because it
was anticipated that this would be a difficult year and there was a desire to have
as much time as possible to review the budgets and consider alternatives.
In October, Town officials and the Warrant Committee realized that FY10
was going to be a very difficult year. We anticipated early in the process that
FY10 revenues were likely to be less than FY09. The Warrant Committee with
the help of the Town Administrator got the word out to the departments. The
School Department very early in the budget process began working on impact
statements of a level dollar funded budget. The Town Administrator requested
that all town departments prepare impact statements under the assumption that
budgets would be level dollar funded and departments would be required to absorb
all wage increases in their FY10 budgets.
The Warrant Committee’s various subcommittees began their initial review
of budgets in October. Review was slowed because of several meetings with
the Selectmen, the School Committee and other major Town departments to
discuss concerns and alternatives relating to the worsening economy and the
possibility of cuts in State aid in FY09. Budget reviews were also slowed so
that we could prepare for two special town meetings. In October, Town Meet-
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